Eclipse visual editor does not work.

Question

If I try to create a new visual class two error messages pop up:
"IWAV0138E Remote VM terminated too soon. See .log file for trace of output."
"An internal error occurred during: "Create Remote VM for Visual Editor for Java".
IWAV0171E Could not create a socket connection to remote vm. This is often due to your firewall blocking access from your java to do local access."
Here is the full error log: http://pastebin.com/m4c700db3
I have no firewall enabled:
core@c-laptop:~$ sudo iptables -L
Chain INPUT (policy ACCEPT)
target prot opt source destination
Chain FORWARD (policy ACCEPT)
target prot opt source destination
Chain OUTPUT (policy ACCEPT)
target prot opt source destination
I've read that it could possibly happen due to incorrect /etc/hosts file. Here is mine:
core@c-laptop:~$ cat /etc/hosts
# /etc/hosts: static lookup table for host names
127.0.0.1 c-laptop localhost
#<ip-address> <hostname.domain.org> <hostname>
192.168.1.102 n810 n810
192.168.1.101 serv serv
# End of file
Any ideas?

Answer 1

I'm guessing 'c-laptop' is the name of your machine? My line looks different in /etc/hosts, I just added my name to the end and left the original domain:
rob ~ $ cat /etc/hosts
# /etc/hosts: static lookup table for host names
#<ip-address> <hostname.domain.org> <hostname>
127.0.0.1 localhost.localdomain localhost rob-thinkpad
# End of file